$Micron Technology(MU)$
No one is paying 2163.50 because they expect memory prices to go back down.
Only a handful of people are using Facebook Muse. Facebook is pulling in a lot of data from their free agent. Grok bot has fewer users, Hermes even fewer.
As models improve, the value of compute goes up. H100 launched 4 years ago, and used H100s are now selling for more than new ones did 4 years ago.
AWS offers discount rates if you reserve an 8x H100 for a year. There are extra fees for bandwidth and storage.
Renting an 8x H100 node for a full year costs $337,522.80. That upfront or committed price is calculated using the AWS 1-Year Savings Plan rate of $38.53 per hour running continuously for 8,760 hours.
In late 2022, AWS likely bought an 8x H100 Hopper setup installed for $220K, and now they rent it out for $337K a year.
AI hardware is memory, and memory is getting expensive because people make a lot of money owning AI hardware.
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